BizEx Research: Trusted M&A Advisors for Lower Middle Market Businesses
Advisory Approach
BizEx is one of the largest business broker and M&A advisory firms in Los Angeles, specializing in the sale of small to medium-sized businesses. Founded in 2005 by Michael S. Davidson, BizEx operates with a fundamental belief: matching the right buyer with the right business is how they define success. The firm stands for "Business Expertise" and leverages technology to simplify and expedite the buying and selling of businesses. Their institutional approach emphasizes consultative sales methodology, integrity-based transaction processes, and deep operational business experience across multiple industries.
The firm positions itself as a different kind of brokerage compared to traditional business brokers. Rather than adopting a generic sales approach, BizEx hand-picks its business broker and M&A advisors based on operational business experience, then provides them with structured support and methodology for business sales transactions. This curated team approach ensures that business owners work with advisors who understand their specific industry context.
Sector Focus & Specialization
BizEx maintains active practices across 11 primary industry verticals. Their business brokers are engaged throughout the entire transaction process, implementing an integrity-based sales approach tailored to each sector's unique dynamics.
eCommerce & Online Retail: The firm has extensive experience selling merchandise businesses across online platforms, retail websites, online auctions, and mail order catalogs. They have developed a specialized buyer database for eCommerce companies, recognizing that valuations for small eCommerce operations typically range from 2-3.5x discretionary earnings, while larger platforms command 4-5x EBITDA multiples.
Retail & Wholesale: BizEx has successfully sold numerous retail and wholesale businesses, including specialty retailers, distribution operations, and high-margin retail concepts. Valuations for small retail stores typically range from 1.5-3x discretionary earnings, with larger operations reaching 4-5x EBITDA.
Food Service & Hospitality: The firm has extensive experience selling restaurants, cafes, catering businesses, and food-related enterprises. Their tombstone portfolio includes successful exits such as the iconic Los Angeles fast-food business, the charming West Hollywood cafe with patio seating, and the "Steal This Restaurant!" location in Diamond Bar.
Manufacturing & Industrial: BizEx actively serves manufacturers of discrete products and process-based manufacturers. Their team includes advisors with operational manufacturing background who understand plant-level economics and capital requirements.
Healthcare & Professional Services: The firm has particular depth in healthcare staffing, physician practice management, dental and veterinary practices, and professional services including accounting and law firms. They have closed multiple community pharmacy sales (34+ years in business) and healthcare staffing transactions.
Technology & Software: BizEx serves software companies, IT services firms, and technology-enabled businesses. They understand the unique valuation approaches and buyer profiles for SaaS and technology platforms.
Services, Construction & Related: The firm has expertise selling business services, facilities management, staffing firms, home improvement companies, and restoration service businesses.
Process & Fee Structure
BizEx operates a structured 9-12 month business sales process. The firm serves both seller and buyer clients, positioning itself as an institutional advisor throughout the transaction lifecycle.
Seller Representation: BizEx provides sell-side M&A advisory, helping business owners navigate the sale process with professional guidance. They offer free business evaluations and consultations to potential seller clients. The firm develops marketing strategies, manages buyer outreach, conducts valuation analysis, and coordinates transaction documentation.
Buyer Network: The firm maintains a database of approximately 12,000-17,000 registered buyers, representing various buyer types including private equity firms, strategic acquirers, family offices, and individual investors. This extensive buyer database is one of their competitive differentiators—it enables them to generate multiple qualified offers for sellers.
Fee Structure: While specific fee details are not publicly disclosed on their website, the firm charges as a percentage of transaction value, consistent with industry standard models for business brokerage.
Competitive Positioning
BizEx differentiates from other business brokers through several key advantages:
Technology-Enabled: The firm leverages technology to streamline the buying and selling process, reducing friction and accelerating timelines compared to traditional brokerages.
Consultative Sales Approach: Unlike transactional brokers, BizEx employs a consultative methodology where advisors act as trusted advisors throughout the process, educating sellers about the market, typical buyer expectations, and deal structure options.
Deep Industry Expertise: The firm hand-picks advisors with operational business experience. For example, Kresimir Peharda, one of their senior advisors, spent 30 years helping business owners and 20+ years as an M&A attorney, having worked on the sale of over 60 businesses with a cumulative value exceeding $2 billion. This operational background differentiates them from brokers with purely sales backgrounds.
Extensive Buyer Network: The 12,000-17,000 registered buyer database is significantly larger than typical boutique brokers, enabling better price discovery through competitive processes.
Institutional Quality: The firm employs institutional-quality process rigor: business valuations, quality of earnings support, management presentations coaching, and structured data room preparation.
Geographic Advantage: While headquartered in Santa Monica, BizEx operates offices across California and Hawaii, providing geographic reach for both local and national transactions.
Team & Leadership
Michael S. Davidson (President, M&A Advisor) holds CBI (IBBA Certified Business Intermediary), CM&AP (Coles College Certified M&A Professional), and M&AMI (M&A Source Mergers & Acquisitions Master Intermediary) credentials. Davidson studied electrical engineering at California State University, Long Beach, and has 20+ years of M&A experience. He spent time as a high-tech sales engineer at Ortel (fiber optic lasers) and worked in commercial real estate before transitioning to business brokerage in 2001. He founded BizEx in 2005 to create an alternative to traditional business brokerage.
Kresimir Peharda (Business Broker / M&A Advisor) brings 30 years of business ownership experience and 20+ years as an M&A attorney. He has worked on the sale of 60+ businesses valued in excess of $2 billion. Peharda holds degrees from Harvard College and Pepperdine University (J.D.). He specializes in professional services (law firms, accounting firms, medical/dental practices), healthcare technology, food distribution, technology, and real estate.
Other Senior Team Members: The firm includes 22+ additional licensed business brokers and M&A advisors, including specialists in eCommerce (Steve Lukes), retail (Betty Jong, Eric Mellem, Tom Plotkin), and other verticals. Several team members have 15-20+ years of transaction experience.
Deal Track Record & Performance
BizEx has sold hundreds of businesses across multiple verticals and geographies. Their tombstone portfolio illustrates the breadth and depth of transactions:
Retail & Service: San Diego healthcare staffing firm, LA beach area used car dealer, high-profit home improvement business, iconic Los Angeles fast-food business, premier LA floral design business (23 years success), jewelry import sourcing, charming West Hollywood cafe with patio seating, mobile phone dealers, Santa Barbara County staffing firm (29 years).
Food & Hospitality: Napa landscaping business, restaurant sales including "Steal This Restaurant!" in Diamond Bar, Aroimaak Thai restaurant in Los Angeles, mail & business center sales.
Professional Services & Healthcare: Multiple community pharmacy sales (Arcadia 34-year pharmacy, San Bernardino pharmacy, Orange County pharmacy), dental and veterinary practices.
Automotive & Services: Auto wrecking business (Duarte), East Ventura auto repair (25+ years service), used car dealers, restoration service professionals.
Special Structures: ESOP transactions, recapitalizations, liquor store sales, business model transitions (absentee-owned franchise turnarounds).
Buyer Network Strength
BizEx maintains relationships with strategic acquirers, private equity groups, and individual investors across multiple buyer types. Their buyer database includes private equity firms interested in add-on acquisitions, strategic buyers in retail and eCommerce seeking consolidation opportunities, family offices acquiring standalone businesses, and strategic buyers in healthcare, professional services, and technology sectors. The firm has successfully closed deals with PE firms, family offices, strategic acquirers, and management-led buyouts.
Market Position & Scale
BizEx operates as one of the largest business broker and M&A advisory firms in Los Angeles. The firm comprises:
- 24+ business brokers and M&A advisors
- Offices across California and Hawaii
- 12,000-17,000 registered buyers in the active database
- 20+ years of collective advisory experience at the partner level
- Member of CABB (California Association of Business Brokers), IBBA (International Business Brokers Association), and M&A Source
Sweet Spot & Not a Fit
Ideal Client Profile: Business owners with enterprises valued between $1 million and $50 million seeking a professional, structured sales process. Founders who value consultative advice, multiple qualified offers, and institutional-quality transaction support. Owners across diverse industries seeking industry-specific expertise matched to their business model.
Not a Fit If: The firm focuses on complete business sales, so pure asset sales may not be a primary focus. Additionally, businesses below $1 million TEV or exceeding $50 million may be outside their core sweet spot, though they maintain broad market reach.
Regulatory Standing
BizEx operates as a California-licensed business brokerage firm (License #01484102). Individual brokers hold California business broker licenses (ranging from #01257681 to #02246770). The firm is not a FINRA-registered broker-dealer—which is standard for business brokers, as securities licensing is not required for the sale of operating businesses (as distinct from securities transactions). The firm complies with California Department of Real Estate regulations governing business broker conduct.
Conclusion
BizEx represents an institutional-quality business brokerage firm addressing an underserved market of lower middle market business sales. Their competitive advantages—extensive buyer network, experienced advisory team, technology-enabled process, and consultative approach—position them as a leading choice for business owners seeking a professional exit.